Week 3 Research Assignment In the past three weeks, we’ve discovered, there are several factors that influence economic systems. We learned about how the supply and demand of certain products or goods are influenced by outside forces like natural disasters, taxes/fees imposed by the government and conflicts overseas. When there is a high demand of a product and a limited amount of supply the price for these product tend to rise. This is illustrated by Graph A of the Supply and Demand Guide which shows at upward shift in the demand curve. This means, consumers are will to pay more for limited quantities of goods at an increased price (Mankiw, 2015). When there is an event such as a hurricane in the Gulf of Mexico, which forces oil refineries to shut-down, prices tend to spike. When this happens, consumers decrease their spending until the price is more becomes more affordable. The decrease in demand shifts the demand curve to the left which shows the decreased willingness to pay the higher price of goods. In response, suppliers are forced to lower the price by decreasing quantity supplied. This results in a new price equilibrium as illustrated in Graph B (Mankiw, 2015). This back and forth movement in the demand curve happens daily when we fuel our vehicles. As fuel prices rise, consumers tend to find way to cut-down the use of their vehicles or find alternative means of transportation. If consumers live in a city that offers mass transit, consumers may start taking mass transit until the prices are affordable again. Another option is to carpool, invest in a more fuel efficient vehicle, or ride a bicycle for short trip. What causes prices to fluctuate at the gas pumps, sometimes at a daily rate? Several factors contribute to this occurrence. One factor is civil unrest in countries that produce oil. A recent article talked about the conflict between Saudi Arabia and Yemen. Although Yemen is a small oil producing country when compared to Saudi Arabia, tensions between the two countries may have influenced the spike in the price of oil. Analysts believe the long-term market impact of conflicts involving oil producing countries will affect the prices in the future. (Reed, 2015). Another factor that people don’t realize is the ever-increasing demand for fuel from countries like China and India. As we go about our routine, people in general, do not understand how much it cost oil companies to produce a gallon of fuel. They don’t understand that one day the price of gas is $2.15 per gallon, then the next day it jumps to $2.50 per gallon. Most people blame the oil companies for raising the prices just to make a bigger profit. If you look at the news, all you hear about are the record profit oil companies are making. The biased media fails to mention the overall cost to the oil companies - exploration, refining process, improvement in technology, transportation, manpower, and taxes. What does it cost to refine oil into gasoline? Although oil companies are reporting record total profits, their profit margin is actually falling (Calore, n.d.). Refining crude oil produces a wide variety of products from gasoline, kerosene, jet fuel, home-heating fuel, asphalt, and road oils. In addition, crude oil contributes to the manufacturing of petrochemical products such as plastics, polyurethane, and other petroleum-based products (Calore, n.d.). The refining process is similar to distilling moonshine. The crude oil is heated and boiled off at different temperatures. As the temperature rise, different products are extracted at different temperatures. For example, at 360 degrees F, products such as butane, naphtha, and low octane gasoline are produced. As the temperature rise to 650 degrees F, jet fuel, kerosene, home heating fuel, and diesel fuel are extracted. At more sophisticated refineries that can heat the crude at temperatures exceeding 1000 degrees F, lighter products and higher octane gasoline is
Related Documents: Week 3 Research Assignment Essay
BUS 631 Week 3 Assignment Manufacturing Options To Buy this Class Copy & paste below link in your Brower http://www.homeworkregency.com/downloads/bus-631-week-3-assignment-manufacturing-options/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BUS 631 Week 3 Assignment Manufacturing Options Manufacturing Options. Research your employer (or a company of your choice) and, using Table 6.1 (p. 187), determine which of the six potential manufacturing…
SOC 300 Week 9 Assignment 2 Lending Institutions, Health Care, and Human Capital https://homeworklance.com/downloads/soc-300-week-9-assignment-2-lending-institutions-health-care-and-human-capital/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Lancehomework@gmail.com Visit our Site for More Tutorials: ( http://homeworklance.com/ ) SOC 300 Week 9 Assignment 2 Lending Institutions, Health Care, and Human Capital Assignment 2: Lending Institutions…
NRS-433V Week 3 Research Critique, Part 1 To purchase this tutorial visit here: http://mindsblow.us/question_des/NRS-433VWeek3ResearchCritiquePart1/2854 contact us at: help@mindblows.us NRS-433V Week 3 Research Critique, Part 1 Introduction to Nursing Research – Theory, Design, and Sampling Prepare a critical analysis of a qualitative study focusing on the problem statement, study purpose, research question, literature review, and theoretical framework. This can be one of the selected articles…
files: ETH 376 Week 1 DQs.doc ETH 376 Week 1 Individual Assignment AICPA Code of Professional Conduct.doc ETH 376 Week 2 Assignment Ethicality of Accounting Activities.doc ETH 376 Week 2 DQs.doc ETH 376 Week 2 Reflection.doc ETH 376 Week 3 Assignment Legality Ethicality of Financial Reporting.doc ETH 376 Week 3 DQs.doc ETH 376 Week 3 Reflection.doc ETH 376 Week 4 DQs.doc ETH 376 Week 4 Individual Assignment Legality and Ethicality of Corporate Governance.doc ETH 376 Week 4 Reflection.doc…
MGT 300 MODULE 3 LEADERSHIP AND TEAMS To purchase this visit following link: http://www.activitymode.com/product/mgt-300-module-3-leadership-and-teams/ Contact us at: SUPPORT@ACTIVITYMODE.COM MGT 300 MODULE 3 LEADERSHIP AND TEAMS MGT 300 Module 3 CRITICAL THINKING ASSIGNMENT /CSU Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Leadership and Teams – Theoretical Leadership…
SOC 300 Week 4 Assignment 1 The Effects of War and Peace on Foreign Aid https://homeworklance.com/downloads/soc-300-week-4-assignment-1-the-effects-of-war-and-peace-on-foreign-aid/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Lancehomework@gmail.com Visit our Site for More Tutorials: ( http://homeworklance.com/ ) SOC 300 Week 4 Assignment 1 The Effects of War and Peace on Foreign Aid Sociology – General Sociology Assignment 1: The Effects…
file of ENV 100 Week 1 Discussion Questions 1 comprises: Discuss a particular technology and its use in conducting environmental research using one of the examples listed below: 1) GPS and animal tracking 2) GPS and deforestation 3) doppler radar and animal migrations 4) sensitive detection of chemical exposure in the blood to measure pollution exposure 4) technology used to monitor weather 5) your choice. General Questions - General General Questions ENV 100 Week 1 Individual Assignment…
ENGL 112 WEEK 4 ASSIGNMENT To purchase this visit following link http://www.activitymode.com/product/engl-112-week-4-assignment/ Contact us at: SUPPORT@ACTIVITYMODE.COM ENGL 112 WEEK 4 ASSIGNMENT The Rhetorical Analysis Final Essay Week 4 DeVry This week, you will use the drafting and planning work from the Week 3 Extended Draft Outline to write the final three- to four-page Rhetorical Analysis essay. Draw upon last week’s assignment, the lecture, and textbook reading to help you understand…
com BUS 600 Week 1 Assignment Vision Statement BUS 600 Week 1 Assignment Annotated Bibliography BUS 600 Week 1 DQ 1 Importance of Communication BUS 600 Week 1 DQ 2 Ashford Learning Resources BUS 600 Week 2 Assignment Topic Thesis Statement for Research Paper BUS 600 Week 2 Assignment International and Intercultural Communication (2 Papers) BUS 600 Week 2 DQ 1 Reducing Communication Barriers BUS 600 Week 2 DQ 2 Intercultural Communication Competence BUS 600 Week 3 Assignment Communications…